Questions have arisen over whether Hong Kong Exchanges and Clearing (0388.HKG) should retain its role as regulator of the Hong Kong Stock Exchange in light of the benefits it receives from market reforms, South China Morning Post reported. A prime example of the conflict of interests between its dual roles as regulator and for-profit firm came when the operator’s shares rose more than HK$100 in four days to a record high on Monday due to market speculation that a ceiling on trading via the Hong Kong-Shanghai Stock Connect would be lifted, yet the exchange could not provide more information on the plan to the public–its duty as a listed company.
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